President Joe Biden extended a national emergency that authorizes certain sanctions against Nicaragua, the White House said Nov. 16. The Nicaraguan government has used violence to stop protests and continues to undermine the country’s democratic institutions, the White House said. The emergency was extended for one year beyond Nov. 27.
Although Japan was considering creating a human rights sanctions regime, it has abandoned the effort for the “time being,” according to a Nov. 16 report from The Mainichi, a Japanese newspaper. The country is hoping to “keep its diplomatic options open” with China, the report said, which would likely require sanctions under the legislation for China's abuses against religious minorities in the Xinjiang region. Japan will consider using existing legislation, including its foreign exchange and foreign trade law, to impose penalties and asset freezes for human rights violations, the report said.
The Commerce Department and the State Department are considering final rules that would revise export controls for goods destined to Cambodia. Under its final rule, Commerce’s Bureau of Industry and Security would revise certain restrictions for Cambodia under the Export Administration Regulations, while the State Department would add Cambodia to its list of proscribed countries in the International Traffic in Arms Regulations. Both agencies sent their respective rules for interagency review Nov. 16.
A bipartisan congressional commission called on the U.S. to take more aggressive steps to stop China from acquiring sensitive U.S. technologies, including through more export controls and sanctions. The recommendations, released Nov. 17 by the U.S.-China Economic and Security Review Commission as part of its annual report to Congress, could make sweeping changes to how the Commerce Department imposes certain export controls and how U.S. agencies coordinate trade restrictions.
The European Court of Justice ruled that the freezing of funds and economic resources prevents the implementation of measures that establish a right to be paid on a priority basis in favor of a certain creditor in relation to others, because those measures alter the destination of the frozen funds, potentially allowing their use. The decision came in response to a preliminary ruling from the French Court of Cassation on questions arising from the case Bank Sepah v. Overseas Financial Ltd. and Oaktree Finance Ltd. The case dealt with creditors' ability to enforce action against assets frozen under the EU's Iran sanctions regime, the EU Sanctions blog reported Nov. 15. The French court asked the ECJ whether EU sanctions prevent a "non-earmarking" judicial lien from being imposed over frozen assets without a license and whether it is relevant that the debt is unrelated to the Iranian ballistic missile program and came about before the bank's United Nations sanctions designation. On the latter question, the ECJ said that "the fact that the grounds for the claim for recovery from the person whose funds are frozen are unrelated to the Iranian ballistic missile programme is not relevant to that question," EU Sanctions said.
The Environmental Protection Agency published a final rule Nov. 15 setting new significant new use rules (SNURs) under the Toxic Substances Control Act (TSCA) for five chemical substances subject to Premanufacture Notices (PMNs). As a result of the SNURs, persons planning to manufacture, import or process any of the chemical substances for an activity designated as a significant new use by this rule are required to notify EPA at least 90 days in advance. Importers of chemicals subject to these SNURs will need to certify their compliance with the SNUR requirements, and exporters of these chemical substances will now become subject to export notification requirements. The final rule takes effect Jan. 14, 2022. The SNURs cover the following:
Export Compliance Daily is providing readers with the top stories for Nov. 8-12 in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The United Kingdom’s new foreign investment screening law may draw more industry filings than first expected, Baker McKenzie lawyer Sunny Mann said. Although the U.K.’s new National Security and Investment Act doesn’t officially take effect until Jan. 4, Mann said many companies are already showing signs they plan to be careful and notify the U.K. before closing investment deals, rather than waiting for the government to intervene.
The Bureau of Industry and Security needs to better enforce its foreign direct product (FDP) rule, which is not adequately stopping Huawei and other Chinese companies from acquiring certain sensitive U.S.-produced technology, eight Republican senators said in a Nov. 15 letter to Commerce Secretary Gina Raimondo. The senators said Commerce’s “lax enforcement” of the rule has encouraged other technology firms to sell to companies on the Entity List, said the lawmakers, who all serve on the Senate Committee on Commerce, Science and Transportation.
The European Union expanded the listing criteria under its Belarus sanctions regime to target the "instrumentalisation of human beings carried out by the Belarus regime for political purposes," the European Council said Nov. 15. The EU can now target individuals and entities that help the EU external border crossings between Poland and Belarus. The move comes as a direct response to Belarus President Alexander Lukashenko's allegedly deliberate attempts to herd thousands of migrants, primarily from Iraq and Afghanistan, to the Polish, Lithuanian and Latvian borders. "Today's decision reflects the determination by the European Union to stand up to the instrumentalisation of migrants for political purposes," said Josep Borrell, the council's high representative for foreign affairs and security policy. "We are pushing back on this inhuman and illegal practice. At the same time, we continue to underline the unacceptable ongoing repression by the regime against its own population at home, and we will respond accordingly."